PROVO, Utah–(BUSINESS WIRE)–Raser Technologies, Inc. (NYSE: RZ – News), a leading energy technology company, announced today that it has restructured its purchase agreements with subsidiaries of United Technologies Corp. (NYSE: UTX – News). As part of the restructured agreements, Raser obtained a refund of more than $7 million that had previously been deposited in connection with orders of PureCycle® power systems. Raser will continue to have a preferred relationship for the generating units with United Technologies’ Pratt & Whitney Power Systems (PWPS), which recently assumed the management of the PureCycle power system product line from UTC Power, subject to certain conditions and timeframes. PWPS will maintain a minimum inventory of 50 of the modular units for Raser’s planned geothermal power projects through 2009. The restructured agreements should help Raser to continue to pursue its rapid deployment strategy and reduce cash committed to deposits for equipment.

Raser is completing the well field and ramp up process for its first commercial geothermal power project using the PureCycle binary cycle geothermal power generating units. Raser noted that the Thermo plant was constructed in just six months using a revolutionary modular construction design, greatly reducing the normal five-to-seven years typically required for traditional plant development and construction technology.

Raser uses the modular geothermal units to generate electricity from underground water at temperatures much lower than other technologies. This opens the door to vast resources of underground heated water that heretofore were believed to be insufficient for generating electricity.

Brent M. Cook, CEO of Raser said, “We are grateful for our strong partnership with PWPS and appreciate their commitment to helping us develop these geothermal power plants. They continue to be very supportive and stand behind their modular units, which continue to perform at higher levels than expected.”

About Raser Technologies

Raser (NYSE: RZ – News) is an environmental energy technology company focused on geothermal power development and technology licensing. Raser’s Power Systems segment is seeking to develop clean, renewable geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology and Raser’s Symetron™ technology developed internally by its Transportation and Industrial segment. Raser’s Transportation & Industrial segment focuses on extended-range plug-in-hybrid vehicle solutions and using Raser’s award-winning Symetron™ technology to improve the torque density and efficiency of the electric motors and drive systems used in electric and hybrid-electric vehicle powertrains and industrial applications. Further information on Raser may be found at: www.rasertech.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements regarding: our beliefs about preliminary drilling results; our beliefs about the potential for geothermal power generation on our leased properties and its qualification for certain federal tax credits; our beliefs about our ability to exploit the available geothermal resources; our beliefs about the expected timing relating to the testing and commissioning of our geothermal power projects; our beliefs about our ability to continue to execute our rapid deployment strategy; our beliefs about local utility’s ability to complete their work in a timely manner; our beliefs about our ability to obtain adequate development funding; our beliefs about our ability to utilize our technology and other available technologies to produce electric power from the available resources; and our beliefs about the geothermal market in general. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the competitive environment and our ability to compete in the industry; our ability to adapt our technology and third-party technology for the intended applications; our ability to secure necessary permits; the strength of our intellectual property; our ability to attract, train and retain key personnel; and such other risks as identified in our annual report on Form 10-K for the year ended December 31, 2008, as filed with the Securities and Exchange Commission, and all subsequent filings.

All forward-looking statements in this press release are based on information available to us as of the date hereof, and we undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.

Contact:

Raser Technologies, Inc.
Richard Putnam, Investor Relations
(801) 765-1200
investorrelations@rasertech.com
or
Hayden IR
Cameron Donahue
(651) 653-1854
cameron@haydenir.com
or
Public Relations contact: Stern & Co.
Richard Stern
212 888-0044
richstern@sternco.com
Alison Simard
323-650-7117
arsimard@sternco.com